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Pampa Energia SA (NYSE:PAM)
Beneish M-Score
-3.91 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Pampa Energia SA has a M-score of -3.91 suggests that the company is not a manipulator.

PAM' s 10-Year Beneish M-Score Range
Min: -8.26   Max: 3.7
Current: -3.91

-8.26
3.7

During the past 10 years, the highest Beneish M-Score of Pampa Energia SA was 3.70. The lowest was -8.26. And the median was -2.54.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Pampa Energia SA for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.4486+0.528 * -0.6772+0.404 * 0.7962+0.892 * 1.0264+0.115 * 1.0777
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2684+4.679 * -0.1745-0.327 * 1.1441
=-3.91

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $239.8 Mil.
Revenue was 189.625497076 + 174.263157895 + 167.416023392 + 160.966549708 = $692.3 Mil.
Gross Profit was 5.63052631579 + -0.469239766082 + 13.3058479532 + -6.92783625731 = $11.5 Mil.
Total Current Assets was $522.5 Mil.
Total Assets was $1,802.3 Mil.
Property, Plant and Equipment(Net PPE) was $984.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $50.3 Mil.
Selling, General & Admin. Expense(SGA) was $164.5 Mil.
Total Current Liabilities was $751.4 Mil.
Long-Term Debt was $448.7 Mil.
Net Income was 11.1809356725 + 36.2211695906 + -45.6263157895 + -11.5273684211 = $-9.8 Mil.
Non Operating Income was 50.4715789474 + 11.1871345029 + -35.5016374269 + -32.4559064327 = $-6.3 Mil.
Cash Flow from Operations was 117.149707602 + 54.8639766082 + 58.4222222222 + 80.6177777778 = $311.1 Mil.
Accounts Receivable was $161.3 Mil.
Revenue was 167.321403509 + 133.144444444 + 162.807017544 + 211.220935673 = $674.5 Mil.
Gross Profit was -2.75356725146 + -8.82140350877 + -11.8011695906 + 15.7619883041 = $-7.6 Mil.
Total Current Assets was $428.4 Mil.
Total Assets was $1,506.7 Mil.
Property, Plant and Equipment(Net PPE) was $768.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $42.4 Mil.
Selling, General & Admin. Expense(SGA) was $126.4 Mil.
Total Current Liabilities was $567.4 Mil.
Long-Term Debt was $309.5 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(239.777894737 / 692.27122807) / (161.277777778 / 674.49380117)
=0.34636409 / 0.23910936
=1.4486

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(-0.469239766082 / 674.49380117) / (5.63052631579 / 692.27122807)
=-0.01128869 / 0.01666875
=-0.6772

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (522.497777778 + 984.28994152) / 1802.32245614) / (1 - (428.390760234 + 767.998128655) / 1506.69356725)
=0.1639744 / 0.20595076
=0.7962

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=692.27122807 / 674.49380117
=1.0264

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(42.4397660819 / (42.4397660819 + 767.998128655)) / (50.269005848 / (50.269005848 + 984.28994152))
=0.05236646 / 0.04858979
=1.0777

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(164.494269006 / 692.27122807) / (126.35380117 / 674.49380117)
=0.23761535 / 0.1873313
=1.2684

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((448.732280702 + 751.372631579) / 1802.32245614) / ((309.497309942 + 567.377660819) / 1506.69356725)
=0.66586582 / 0.58198627
=1.1441

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(-9.75157894737 - -6.29883040936 - 311.053684211) / 1802.32245614
=-0.1745

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Pampa Energia SA has a M-score of -3.91 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Pampa Energia SA Annual Data

Jun04Jun05Jun06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.49210.75121.15151.04981.01881.7588
GMI 1.0931.05941.21291.02692.2833-1.559
AQI 1.08550.76410.81160.85742.41230.5954
SGI 2.71351.021.18881.3921.11660.7053
DEPI 0.50291.09211.00710.90240.90071.222
SGAI 0.90881.13751.04041.25870.85221.6928
LVGI 1.0090.93341.12291.3190.99011.2493
TATA -0.0635-0.1047-0.0554-0.0547-0.1495-0.0778
M-score -1.68-3.24-2.44-2.54-1.79-4.10

Pampa Energia SA Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.76831.16961.01880.80741.35191.23221.7581.87711.82351.4486
GMI 1.29531.72932.28334.577413.138-8.8677-1.5867-4.26592.1462-0.6772
AQI 2.12412.00112.41230.90210.68180.76010.59540.57160.86880.7962
SGI 1.22351.13211.11661.07880.89840.78920.70560.73190.88971.0264
DEPI 0.61870.66750.90071.20831.32431.29081.29681.22261.07271.0777
SGAI 1.11981.05680.8460.89191.16751.32851.71431.6631.34821.2684
LVGI 1.05661.04420.99011.14771.15581.2291.24931.28791.18741.1441
TATA -0.0791-0.0854-0.1451-0.187-0.0615-0.0849-0.0759-0.0541-0.14-0.1745
M-score -2.34-1.88-1.77-1.623.70-8.26-4.10-5.30-2.04-3.91
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